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REGISTERED NUMBER: 01967635 (England and Wales)















CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023






CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 28 FEBRUARY 2023







DIRECTORS: F S Swindells
M F Swindells
A R Lowe





REGISTERED OFFICE: 72C Moss Lane
Macclesfield
Cheshire
SK11 7TT





REGISTERED NUMBER: 01967635 (England and Wales)





AUDITORS: DJH Mitten Clarke Audit Limited
Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
BL9 0DN

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023


The directors present their strategic report for the year ended 28 February 2023.

REVIEW OF BUSINESS
The directors are satisfied with the performance of the company during the year, particularly in light of the current economic climate and the continuous increase of government legislation. This financial year has again shown trading profits. Revenue in the year reached record levels after the covid period. The company is one of the top 50 demolition businesses out of 4,299 companies within this industry in the UK and Ireland (www.bolddata.nl database).

Key performance indicators

Year End February 2023 2022

Increase Revenue up 21% up 38%
Human Resources Input up 12% up 19%
Profit before tax £449,502 £85,123


Business strategy, objectives and future developments
The business strategy is to grow by serving the industry with complementary services, demolition, provision of recycling management, haulage, and construction.

The company's objective is to maintain steady performance and growth with the lowest level of leverage. It aims to increase shareholder funds and meet its responsibilities to other stakeholders with priorities given to environmental matters. Once again, the company continued investing in its infrastructure and workforce with continual training, upskilling, and keeping up to date with current Health & Safety Legislation. We aim to provide progression opportunities and fulfilling careers for all employees.


CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

PRINCIPAL RISKS AND UNCERTAINTIES
The company uses its working capital instruments which include cash and various elements, such as trade debtors and creditors which arise its operations. The main risks from those financial instruments are market risk, cash flow, interest rate risk, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years.

Legislative risk The industry is controlled by legislative increases year on year that dictate disposal prices at third party sites. The company's strategy is to divert material from landfill, however alternative off-takers align their rates with increases set by the government. We hope for near future government incentives instead of more legislation.

Market risk encompasses three types of risk being currency risk, fair value interest rate risk and price risk. The company conducts all transactions in Sterling and therefore has no material exposure to currency risk. Other risks are summarised below.

Price risk in financial instruments may exist where their value varies in accordance with currency, interest rate or other market movements. None of the company's financial instruments are subject to any market movements affecting price risk. In summary therefore exposure to price risk is not considered material.

Commodity risk. The business model relies heavily on being competitive in all environments including volatile market. Thus, we rely on the recovery of commodity material for resale to boost margin. Uncertainty in the market can affect rebates paid, having a consequential effect on our pricing model. Brexit is having a consequential effect of commodity trading with fewer off-takers and more red tape.

Liquidity risk. The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and lo invest cash assets safely and profitably.

Interest rate risk. The interest amounts in the company's reports, including directors' loans invested into the company, is determined by reference to base rate and therefore the interest rate risk is not considered material to those financial instruments' fair value.

Credit risk. To manage credit risk, the directors set limits for customers based on a combination of payment history and third-party credit references. Credit limits are reviewed on a regular basis. Also new credit controller manager's role was created and filled during the year in order to strengthen this part of the accounting department.

ON BEHALF OF THE BOARD:





F S Swindells - Director


20 March 2024

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023


The directors present their report with the financial statements of the company for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activities of the company in the year under review were those of the retail, wholesale, processing and reclamation of scrap materials, demolition work, building contractors and the operation of a waste transfer station.

DIVIDENDS
No dividends will be distributed for the year ended 28 February 2023.

DIRECTORS
F S Swindells has held office during the whole of the period from 1 March 2022 to the date of this report.

Other changes in directors holding office are as follows:

M F Swindells and A R Lowe were appointed as directors after 28 February 2023 but prior to the date of this report.

N Trueman ceased to be a director after 28 February 2023 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023


AUDITORS
DJH Mitten Clarke Audit Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:





F S Swindells - Director


20 March 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED


Opinion
We have audited the financial statements of Cheshire Demolition & Excavation Contractors Limited (the 'company') for the year ended 28 February 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other matters
The financial statements were not audited in the prior year as the company was below the threshold for audit.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our planning process:
- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health & Safety at Work Act 1974 and National Minimum Wage act 1998. Specific laws and regulations that are key to the continuation of the business were Environmental Protection Act 1990 and Waste Management Licensing Regulations 1994.
- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries, in particular those that were material or unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to fixed asset depreciation rates, residual values and provisions for bad debts.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation, as identified at planning above.
- Documenting and verifying all significant related party balances and transactions.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Fiona O’Loughlin (Senior Statutory Auditor)
for and on behalf of DJH Mitten Clarke Audit Limited
Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
BL9 0DN

20 March 2024

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
as restated
(Unaudited)
Notes £    £   

REVENUE 3 10,777,176 8,894,574

Cost of sales (7,100,701 ) (5,838,613 )
GROSS PROFIT 3,676,475 3,055,961

Administrative expenses (3,191,141 ) (2,906,738 )
485,334 149,223

Other operating income 62,983 29,724
OPERATING PROFIT 5 548,317 178,947


Interest payable and similar expenses 6 (98,815 ) (93,824 )
PROFIT BEFORE TAXATION 449,502 85,123

Tax on profit 7 (4,640 ) (27,796 )
PROFIT FOR THE FINANCIAL YEAR 444,862 57,327

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

444,862

57,327
Prior year adjustment 8 (100,000 )
TOTAL COMPREHENSIVE INCOME
SINCE LAST ANNUAL REPORT

344,862

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

STATEMENT OF FINANCIAL POSITION
28 FEBRUARY 2023

2023 2022
as restated
(Unaudited)
Notes £    £   
FIXED ASSETS
Intangible assets 9 - -
Property, plant and equipment 10 4,215,874 4,096,896
4,215,874 4,096,896

CURRENT ASSETS
Inventories 11 785,393 627,196
Debtors 12 2,405,805 1,976,067
Cash at bank and in hand 170,841 284,544
3,362,039 2,887,807
CREDITORS
Amounts falling due within one year 13 (4,569,839 ) (4,017,882 )
NET CURRENT LIABILITIES (1,207,800 ) (1,130,075 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,008,074

2,966,821

CREDITORS
Amounts falling due after more than one
year

14

(1,057,524

)

(1,465,775

)

PROVISIONS FOR LIABILITIES 18 (623,581 ) (618,939 )
NET ASSETS 1,326,969 882,107

CAPITAL AND RESERVES
Called up share capital 19 3,000 3,000
Retained earnings 20 1,323,969 879,107
SHAREHOLDERS' FUNDS 1,326,969 882,107

The financial statements were approved by the Board of Directors and authorised for issue on 20 March 2024 and were signed on its behalf by:





F S Swindells - Director


CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 March 2021 3,000 821,780 824,780

Changes in equity
Total comprehensive income - 157,327 157,327
Balance at 28 February 2022 3,000 979,107 982,107
Prior year adjustment - (100,000 ) (100,000 )
As restated 3,000 879,107 882,107

Changes in equity
Total comprehensive income - 444,862 444,862
Balance at 28 February 2023 3,000 1,323,969 1,326,969

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023


1. STATUTORY INFORMATION

Cheshire Demolition & Excavation Contractors Limited is a private company, limited by shares, registered in England & Wales. The company's registered number is 01967635 and its registered office address is 72c Moss Lane, Macclesfield, Cheshire, SK11 7TT.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The company had net assets of £1,326,969 (2022: £882,107) at the year end and has continued to generate profits post year end. The directors believe that the company is well placed to manage the risks at these challenging times and therefore continue to adopt a going concern basis of accounting in preparing these financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 33.7.

Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Although these estimates are based on management's best knowledge of the amount, events or actions, actual results ultimately may differ from those estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying
amount of assets and liabilities are outlined below.

Estimating the useful economic life and residual value of an asset and the anticipated residual value are considered key in calculating an appropriate depreciation charge.

In categorising leases as finance or operating leases, the directors make judgements as to whether significant risks and rewards of ownership have transferred to the company as lessee.

Making judgement based on historical experience on the level of provision required for impairment of inventories and work in progress.

Making judgement based on historical experience on the valuation of amounts receivable on contracts.

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


2. ACCOUNTING POLICIES - continued

Revenue
Revenue represents the net invoiced sales of goods, demolition work, haulage services and skip hire excluding value added tax.

Material sales are recognised when the goods are delivered or collected by the customer, the customer has accepted them and all related receivables are reasonably assured.

Demolition work and haulage services are recognised as those services are provided to the customer, the customer has accepted them, and collection of the related receivables is anticipated. Consideration accrues as contract activity progresses by reference to the value of work performed. Revenue is not recognised where the right to receive payment is contingent on events outside the control of the company.

Unbilled revenue is included in debtors as 'Amounts recoverable on contracts'.

Skip hire services are recognised upon the collection of the skip, being the completion of the service provided to the customer, the customer has accepted the service, and all related receivables are reasonably assured.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2014, has been amortised evenly over its estimated useful life of three years.

Property, plant and equipment
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter

Improvements to property - 2% on cost
Plant and machinery - 15% on reducing balance, 4-5 years straight line
Motor vehicles- 25% on reducing balance, 3-4 years straight line
Computer equipment- 33% on cost

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Inventories and work in progress
Inventories and work in progress are stated at the lower of cost and net realisable value. Cash receipts for work in progress contracts are deducted from the value of work in progress or, to the extent that they exceed this value, are included in creditors.

Cost comprises direct materials on a first in, first out basis and direct labour, plus any attributable overheads based on a normal level of activity. Net realisable value is based on estimated selling price less attributable costs of disposal. Provision is made for all foreseeable losses and in the case of inventories, due allowance is made for obsolete and slow moving items.

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


2. ACCOUNTING POLICIES - continued

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance lease are capitalised in the statement of financial position. Those held under the hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to income statement over the relevant period. The capital element of the future payments is treated as liability.

Rentals paid under operating leases are charged to income statement in the period to which they relate.

Pension costs and other post-retirement benefits
The company operates a small self administered pension scheme for the benefit of the directors. Contributions payable to the company's pension scheme are charged to income statement in the period to which they relate.

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


3. REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

2023 2022
as restated
(Unaudited)
£    £   
Material sales 2,989,158 2,758,197
Skip hire 1,944,379 1,811,127
Haulage 1,345,317 1,290,844
Demolition and construction 3,076,737 1,571,291
Waste transfer 1,287,940 1,206,217
Miscellaneous 133,645 256,898
10,777,176 8,894,574

All revenue is generated in the UK.

4. EMPLOYEES AND DIRECTORS
2023 2022
as restated
(Unaudited)
£    £   
Wages and salaries 2,113,536 1,907,733
Social security costs 220,058 173,784
2,333,594 2,081,517

The average number of employees during the year was as follows:
2023 2022
as restated
(Unaudited)

Operational 60 56

2023 2022
as restated
(Unaudited)
£    £   
Directors' remuneration 60,940 21,854

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
as restated
(Unaudited)
£    £   
Hire of plant and machinery 306,316 241,280
Depreciation - owned assets 350,257 411,786
Depreciation - assets on hire purchase contracts 256,127 299,603
Loss/(profit) on disposal of fixed assets 11,448 (119,181 )
Auditors' remuneration 15,500 -

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
as restated
(Unaudited)
£    £   
Bank loan interest 30,073 29,468
Directors' current account interest 25,455 20,493
Hire purchase interest 43,287 43,863
98,815 93,824

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
as restated
(Unaudited)
£    £   
Current tax:
UK corporation tax - (236,661 )

Deferred tax:
Accelerated capital allowances 4,640 264,457
Tax on profit 4,640 27,796

UK corporation tax has been charged at 19% .

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
as restated
(Unaudited)
£    £   
Profit before tax 449,502 85,123
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

85,405

16,173

Effects of:
Expenses not deductible for tax purposes 9,750 6,289
Depreciation in excess of capital allowances 24,580 44,148
Adjustments to tax charge in respect of previous periods 19,000 122,910
Losses carried forward (195,557 ) (161,724 )
Change in tax rate 61,462 -
Total tax charge 4,640 27,796

For financial years beginning after 1 April 2023, the corporation tax rate will be increased to 25% for profits over £250,000. A small profits rate (SPR) will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by marginal relief. The directors are not aware of any other factors that will materially affect the future tax charge.

8. PRIOR YEAR ADJUSTMENT

A prior year adjustment was made in relation to a £100,000 deposit held in work in progress, which was paid personally by a director. There is an effect on corporation tax of £19,000.

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 March 2022
and 28 February 2023 50,000
AMORTISATION
At 1 March 2022
and 28 February 2023 50,000
NET BOOK VALUE
At 28 February 2023 -
At 28 February 2022 -

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


10. PROPERTY, PLANT AND EQUIPMENT
Improvements
to Plant and Motor Computer
property machinery vehicles equipment Totals
£    £    £    £    £   
COST
At 1 March 2022 49,994 5,082,431 1,863,212 38,577 7,034,214
Additions - 848,034 575,058 12,762 1,435,854
Disposals - (1,020,465 ) (143,180 ) - (1,163,645 )
At 28 February 2023 49,994 4,910,000 2,295,090 51,339 7,306,423
DEPRECIATION
At 1 March 2022 1,228 1,959,052 948,235 28,803 2,937,318
Charge for year 1,200 393,045 205,593 6,546 606,384
Eliminated on disposal - (373,059 ) (80,094 ) - (453,153 )
At 28 February 2023 2,428 1,979,038 1,073,734 35,349 3,090,549
NET BOOK VALUE
At 28 February 2023 47,566 2,930,962 1,221,356 15,990 4,215,874
At 28 February 2022 48,766 3,123,379 914,977 9,774 4,096,896

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 March 2022 1,398,074 1,142,909 2,540,983
Additions 693,000 248,000 941,000
Disposals (430,000 ) - (430,000 )
Transfer to ownership - (436,580 ) (436,580 )
At 28 February 2023 1,661,074 954,329 2,615,403
DEPRECIATION
At 1 March 2022 154,224 434,449 588,673
Charge for year 128,211 127,916 256,127
Eliminated on disposal (33,879 ) - (33,879 )
Transfer to ownership - (251,515 ) (251,515 )
At 28 February 2023 248,556 310,850 559,406
NET BOOK VALUE
At 28 February 2023 1,412,518 643,479 2,055,997
At 28 February 2022 1,243,850 708,460 1,952,310

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


11. INVENTORIES
2023 2022
as restated
(Unaudited)
£    £   
Inventories 354,403 272,660
Work-in-progress 430,990 354,536
785,393 627,196

12. DEBTORS
2023 2022
as restated
(Unaudited)
£    £   
Amounts falling due within one year:
Trade debtors 936,786 1,429,847
Amounts recoverable on contracts 391,990 186,372
Other debtors 710,964 94,335
Corporation tax 262,435 262,435
Prepayments and accrued income - 3,078
2,302,175 1,976,067

Amounts falling due after more than one year:
Trade debtors 103,630 -

Aggregate amounts 2,405,805 1,976,067

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
as restated
(Unaudited)
£    £   
Bank loans and overdrafts (see note 15) 228,889 228,912
Hire purchase contracts (see note 16) 674,995 504,895
Trade creditors 540,338 572,924
Social security and other taxes 99,546 144,215
Other creditors 1,275,100 635,248
Directors' current accounts 1,632,573 1,813,874
Accrued expenses 118,398 117,814
4,569,839 4,017,882

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
as restated
(Unaudited)
£    £   
Bank loans (see note 15) 286,111 515,000
Hire purchase contracts (see note 16) 771,413 950,775
1,057,524 1,465,775

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
as restated
(Unaudited)
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts - 23
Bank loans 228,889 228,889
228,889 228,912

Amounts falling due between one and two years:
Bank loans - 1-2 years 228,889 228,889

Amounts falling due between two and five years:
Bank loans - 2-5 years 57,222 286,111

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
as restate
(Unaudited
£    £   
Net obligations repayable:
Within one year 674,995 504,895
Between one and five years 771,413 950,775
1,446,408 1,455,670

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


16. LEASING AGREEMENTS - continued

Non-cancellable operating leases
2023 2022
as restated
(Unaudited)
£    £   
Within one year 95,033 66,950
Between one and five years 183,046 200,850
278,079 267,800

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
as restated
(Unaudited)
£    £   
Hire purchase contracts 1,446,408 1,455,670

The hire purchase debt is secured against the assets concerned.

18. PROVISIONS FOR LIABILITIES
2023 2022
as restated
(Unaudited)
£    £   
Deferred tax
Accelerated capital allowances 955,861 755,663
Tax losses carried forward (332,280 ) (136,724 )
623,581 618,939

Deferred
tax
£   
Balance at 1 March 2022 618,939
Provided during year 4,642
Balance at 28 February 2023 623,581

CHESHIRE DEMOLITION & EXCAVATION
CONTRACTORS LIMITED (REGISTERED NUMBER: 01967635)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023


19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
3,000 Ordinary £1 3,000 3,000

20. RESERVES

The following describes the nature and purpose of each reserve within equity:

ReservesDescription and purpose

Retained earningsAll other net gains and losses and transactions with owners not recognised
elsewhere

21. ULTIMATE PARENT COMPANY

The immediate and ultimate parent company is Cheshire Demolition Holdings Limited, a company registered in England and Wales, which prepares group consolidated financial statements. Copies can be obtained from The Exchange, 5 Bank Street, Bury, Lancashire, BL9 0DN.

22. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties of the company are F S Swindells and N Trueman, the directors and shareholders of the ultimate parent company.